AFSCME2384

MEMORANDUM OF UNDERSTANDING

2010-2012

CITY OF PHOENIX

AND

AMERICAN FEDERATION OF STATE,

COUNTY

AND MUNICIPAL EMPLOYEES

LOCAL 2384, AFL-CIO

COVERING FIELD UNIT II

PREAMBLE ......................................................................................................................................... 1

ARTICLE 1: RIGHTS ............................................................................................................................ 2

SECTION I-I: GENDER ........................................................................................................................................................................ 2

SECTION I-I A: RECOGNITION ............................................................................................................................................................ 2

SECTION 1-2: CITY AND DEPARTMENT RIGHTS ............................................................................................................................... 2

SECTION 1-3: UNION RIGHTS ............................................................................................................................................................ 3

SECTION 1-4: RIGHTS OF UNIT EMPLOyEES ...................................................................................................................................... 9

SECTION 1-5: PROHIBITION OF STRIKE AND LOCKOUTS ................................................................................................................ 12

SECTION 1-6: NEW POSITIONS/CLASSIFICATIONS .......................................................................................................................... 12

ARTICLE 2: GRIEVANCE/ARBITRATION/LABOR MANAGEMENT ........................................................ 14

SECTION 2-1: GRIEVANCE PROCEDURE .......................................................................................................................................... 14

SECTION 2-1: ARBITRATION ........................................................................................................................................................... 19

SECTION 2-2: LABOR-MANAGEMENT COMMITTEE ......................................................................................................................... 22

SECTION 2-3: HEALTH AND SAFETY COMMITTEE ......................................................................................................................... 23

ARTICLE 3: COMPENSATION/WAGES .............................................................................................. 24

SECTION 3-1: WAGES ...................................................................................................................................................................... 24

SECTION 3-IA: LONGEVITy-PERFORMANCE PAY ............................................................................................................................. 26

SECTION 3-2: OVERTIME ................................................................................................................................................................. 28

SECTION 3-2A: CALL OUT PAY ........................................................................................................................................................ 30

SECTION 3-3: OUT-OF-CLASS PAy ................................................................................................................................................... 30

SECTION 3-4: SICK LEAVE CONVERSION AT RETIREMENT ............................................................................................................ 31

SECTION 3-5: SHIFT DIFFERENTIAL PAY ........................................................................................................................................ 31

SECTION 3-5A: WEEKEND SHIFT DIFFERENTIAL PAy ..................................................................................................................... 32

SECTION 3-6: STAND-BY PAY .......................................................................................................................................................... 32

SECTION 3-7: SHow-UpTIME ............................................................................................................................................................. 32

SECTION 3-8: JURY DUTY ............................................................................................................................................................... 33

SECTION 3-9: DEFERRED COMPENSATION PROGRAM .................................................................................................................... 33

ARTICLE 4: HOURS OF WORK/WORKING CONDITIONS ................................................................... 34

SECTION 4-1: HOURS OF WORK ...................................................................................................................................................... 34

SECTION 4-2: REST AND LUNCH PERIODS ...................................................................................................................................... 35

SECTION 4-3: CLEAN-UpTIME .......................................................................................................................................................... 36

SECTION 4-4: SENIORITY ................................................................................................................................................................. 36

SECTION 4-5: BUMP/BID PROCEDURE EQUIPMENT MANAGEMENT DIVISION ................................................................................ 36

ARTICLE 5: BENEFITS ...................................................................................................................... 39

SECTION 5-1: HEALTH INSURANCE AND EMPLOYEE ASSISTANCE ................................................................................................. 39

SECTION 5-2: DENTAL INSURANCE ................................................................................................................................................. 40

SECTION 5-3: LIFE INSURANCE ........................................................................................................................................................ 40

SECTION 5-4: LONG-TERM DISABILITY INSURANCE ....................................................................................................................... 41

SECTION 5-5: HOLIDAYS AND VACATION LEAVE ........................................................................................................................... 41

SECTION 5-6: UNIFORMS ................................................................................................................................................................. 44

SECTION 5-7: PARKING .................................................................................................................................................................... 44

SECTION 5-8: TOOL ALLOWANCE .................................................................................................................................................... 44

SECTION 5-9: PARENTAL LEAVE ..................................................................................................................................................... 47

ARTICLE 6: MISCELLANEOUS .......................................................................................................... 48

SECTION 6-1: SAVING CLAUSE ....................................................................................................................................................... 48

SECTION 6-2: COPIES OF MEMORANDUM ....................................................................................................................................... 48

SECTION 6-3: ApPRENTICESHIP PROGRAMS ................................................................................................................................... 48

SECTION 6-4: PART-TIME EMPLOYEES ........................................................................................................................................... 48

SECTION 6-5: WATER SERVICES DEPARTMENT CERTIFICATIONS ................................................................................................ 49

SECTION 6-6: SAFETY MANUAL ...................................................................................................................................................... 49

SECTION 6-7: TERM AND EFFECT OF MEMORANDUM .................................................................................................................... 50

ADDENDUM ...................................................................................................................................... ~

ALLOCATION OF STEWARDS .......................................................................................................... 53

Preamble

WHEREAS the well-being and morale of the employees of the City are benefited by providing employees an opportunity to participate in the formulation of policies and practices affecting the wages, hours, and working conditions of their employment; and

WHEREAS the parties hereby acknowledge that the provisions of this Memorandum of Understanding (hereinafter Memorandum) are not intended to abrogate the authority and responsibility of City government provided for under the statutes of the State of Arizona or the Charter or Ordinances of the City of Phoenix except as expressly and lawfully modified herein; and

WHEREAS the parties agree that the Phoenix Employment Relations Board (P.E.R.B.) unit certification reflects that there exists a clear and identifiable community of interest among employees covered by this Memorandum; and

WHEREAS the parties, through their designated representatives, met and conferred in good faith pursuant to the Meet and Confer Ordinance in order to reach agreement concerning wages, hours, and working conditions of employees in Field Unit II.

NOW therefore, the City of Phoenix, hereinafter referred to as "the City," and Local 2384, as an affiliate of the American Federation of State, County, and Municipal Employees, AFL-CIO, hereinafter referred to as the "Union", having reached this complete agreement concerning wages, hours, and working conditions for the term specified, the parties submit this Memorandum to the City Council of the City of Phoenix with their joint recommendation that body resolve to adopt its terms.

ARTICLE 1: Rights

Section 1-1: Gender

Whenever any words used herein in the masculine, feminine, or neuter, they shall be construed as though they were also used in another gender in all cases where they would so apply.

Section 1-lA: Recognition

A. The City recognizes the Union as the sole and exclusive meet and confer agent pursuant to the Meet and Confer Ordinance as amended, for the purpose of representation regarding wages, hours, and other conditions of employment for all employees in positions constituting Field Unit II, as certified or as may be modified by the Phoenix Employment Relations Board (P.E.R.B.).

Section 1-2: City and Department Rights

A. The Union recognizes that the City has and will continue to retain, whether exercised or not, the unilateral and exclusive right to operate, administer, and manage its municipal services and work force performing those services in all respects subject to this Memorandum.

B. The City Manager and Department Heads have and will continue to retain exclusive decision-making authority on matters not expressly modified by specific provisions of this Memorandum and such decision-making shall not be in any way, directly or indirectly, subject to the grievance procedure contained herein.

C. The exclusive rights of the City shall include, but not be limited to, the right to determine the organization of City government and the purpose and mission of its constituent agencies, to set standards of service to be offered to the public, and through its management officials to exercise control and discretion over its organization and operations, to establish and effect Administrative Regulations and employment rules and regulations consistent with law and the specific provisions of this Memorandum, to direct its employees, to take disciplinary action for just cause, to relieve its employees from duty because of lack of work or for other legitimate reasons, to determine the methods, means, and personnel by which the City's services are to be provided, including the right to schedule and assign work and overtime, and to otherwise act in the interest of efficient service to the community. Nothing herein shall be construed to diminish the rights of the City under Section 5 of the Meet and Confer Ordinance.

Section 1-3: Union Rights

It is understood by the parties that the benefits granted by this Article shall not be interpreted or applied as requiring the City to count as time worked, any hours or fractions of hours spent outside the employee's work shift in pursuit of benefits provided by this Article. The City shall count as time worked any hours or fractions of hours spent within the employee's regular work shift in pursuit of benefits provided by this Article.

A. Union Stewards

Union stewards have the right to paid release time under the grievance procedure herein subject to the following:

1. The Union may designate up to fifty-five (55) site stewards, twenty-six (26) chief stewards, and seventeen (17) lead stewards to serve as Union representatives. Such designations shall be made from amongst employees regularly working at the job sites as specified in Attachment "A" and such stewards shall service grievances at said job sites to which they are regularly assigned, in accordance with Attachment "A" hereto. Chief Stewards may substitute for job site stewards in the assigned area of jurisdiction as shown in Attachment "A."

The Labor-Management Committee will discuss the job site allocation of stewards upon request by either party (Attachment A) and will consider the deletion or addition of stewards in the event of reorganization or expansion of Unit II departments.

2. The Union shall notify the Labor Relations Division of the Human Resources Department, in writing, of its designations and re-designations of stewards and chief stewards.

3. There shall be no obligations on the City, nor shall the City change or adjust employees' permanent regular work schedules or assignments solely as a result of such designations.

4. One such steward and the grievant may, after the grievant and the supervisor were unable to resolve the matter informally (Article 2, Section 2-1) when the Union is designated by a grievant as his representative, attend mutually scheduled grievance meetings with City of Phoenix department representatives without loss of payor benefits for the purpose of gathering information and/or discussing the resolution of grievances. In no event shall the paid release time under this sub-paragraph (4) be used for any other purpose.

5. City employees who are on duty, either witnesses or grievants and the shop steward representing an employee, may attend Civil Service meetings and Phoenix Employment Relations Board (P.E.R.B.) meetings on City time. In those instances where it is impractical for the steward to communicate with the grievant or witnesses during the non-work hours of the steward and employee(s), supervision shall, subject to operational needs, approve the use of on duty time.

a. Use of such time under this sub-paragraph (5) shall be charged against the Unit total of four thousand eight hundred (4,800) hours provided in Section 1-3 C of this Article.

b. Use of such time shall be subject to notification to the Labor Relations Administration for the purpose of administering the use of said bank hours.

c. Use of the time shall be in increments of fifteen (15) minutes.

d. The Union shall be notified quarterly or upon request of the remaining balance of unused bank of hours. Any unused hours shall be rolled over to the next M.O.U. year and any hours used in excess shall be taken from the next year's bank.

e. Use of such time shall be recorded as paid Union business for the purpose of leave records.

B. International and Union Representatives

Accredited International and appropriately designated Local representatives shall be admitted to the buildings and grounds of the City during working hours for legitimate Union purposes including providing representation to employees, so long as such will not interfere with any work operation or the safety and security of any work site. Such representative will check in with the supervisor involved and will be required to conform to the safety regulations of the work site.

C. Paid Release Time for Unit Related Activity

1. The Union will be allowed, subject to operational and scheduling factors and seventy two (72) hours advance notice in each instance, paid release time for Union members or officers of the Local to attend Union conferences and workshops, meetings of the Executive Board, and meetings of the general membership and other Unit related activities as approved by the Labor Relations Division of the Human Resources Department. Such release time shall not exceed a Unit total of four

thousand eight hundred (4,800) hours in the first M.O.U. year, and five thousand five hundred fifty hours (5,550) in the second M.O.U. year.

In recognition of the mutual benefit provided to the City and the Union by the full-time release positions, the City agrees to pay the President of the Union two hundred eight (208) hours of straight time in his/her compensatory time bank. Each of the other two full-time Union release positions will receive eighty (80) hours of straight time in each of their compensatory time banks each MOU year.

2. Requests for release time shall be submitted to the Labor Relations Administrator and approval of release time hereunder shall not be arbitrarily withheld.

3. The Union will be allowed subject to operational and scheduling factors and fourteen (14) calendar days advance notice, up to one day of paid release time for authorized stewards to attend a one time contract orientation session conducted by the Union in each year of the contract.

4. The President of the Union or designee authorized by the Executive Board, shall be allowed up to two thousand eighty (2,080) work hours per M.O.U. year to engage in lawful Union activities pursuant to and consistent with this Memorandum. The City will pay the employee's full time fringe benefits. Upon return to their regular city duties, the Unit employee shall be reinstated to their original position, location, and schedule by seniority.

5. The Vice President of the Union or designee authorized by the Executive Board, shall be allowed up to two thousand eighty (2,080) work hours per M.O.U. year to engage in lawful Union activities pursuant to and consistent with this Memorandum. The City will pay the employee's full time fringe benefits. Upon return to their regular city duties, the Unit employee shall be reinstated to their original position, location, and schedule by seniority.

6. The Union shall be allowed a third release position to be designated by the Union Executive Board. This position shall be allowed up to two thousand eighty (2,080) work hours per M.O.U. year to engage in lawful Union activities pursuant to and consistent with this Memorandum. The City will pay the employee's full time fringe benefits. Upon return to their regular city duties, the Unit employee shall be reinstated to their original position, location, and schedule by seniority.

7. Use of such time shall be recorded as Paid Union Business for the purpose of leave records.

8. During the first six months of the contract, the Union and Labor Relations will hold a full day Steward training/discussion session. In addition, another half-day session will be spent with the Union, Labor Relations, and departmental management to resolve contract related issues which will reduce grievance handling and any other miscommunication. These sessions will not be charged to the Union bank of hours.

During the contract period, the Union and Labor Relations will hold joint training sessions on MOU changes as well as training in subjects of mutual interest such as grievance processing, employment law, discipline, and contract interpretation.

9. The Union, subject to departmental operation and scheduling factors and reasonable advance notice, shall be allowed a total of one hundred and fifty (150) hours of paid leave to attend Union seminars, lectures, and conventions. In addition, the Union shall receive the sum of fourteen thousand dollars ($14,000) for Union training expenses on or about July 1 of each M.O.U. year.

10. The Union will be allowed one (1) hour each orientation session to talk to and recruit new Unit members into the Union and to explain the rights and benefits under the M.O.U. This time will be allotted in addition to new employee orientation, at the departments that have new employee orientation, in the Aviation, Public Works, and Water Services Departments. The content of such information shall not be political in nature, or abusive of any person in City employment. This time shall be considered de minimus time.

11. Prior to the termination of the current Memorandum and subject to operational and scheduling factors, each designated Union representative, which is defined as the elected Executive Board, will be allowed up to one day of paid release time to facilitate the familiarization of the terms of the successor Memorandum.

D. Unpaid Release Time for Unit Related Activity

Union members may be authorized in advance in writing to engage in lawful Union activities during City work hours on a non-paid basis at the unrestricted discretion of the City Manager or designee consistent with the purpose of this Memorandum.

A member selected by the Union to do Unit representative work which takes the employee from his employment with the City shall, at the written request of the Union, and subject to Civil Service Rules, be granted an unpaid leave of absence. The leave of absence shall be in increments of no less than three (3) months and shall not exceed one (1) year, but it may be renewed or extended for a similar period upon the request of the Union.

There shall be no use of official time for Union related activities except as expressly authorized under the aforesaid sections.

E. Payroll Deduction

1. The City shall deduct from the first pay warrant of Union members, in each month, the regular periodic membership dues and regular periodic Union sponsored insurance premiums pursuant to the City's deduction authorization form duly completed and signed by the employee and transmit such deductions monthly to the Union no later than the fourteenth (14th) day following the end of the pay period in which the deduction occurs, along with an alphabetical list of all employees for whom deductions have been made. Such deduction shall be made only when the Union member's earnings for a pay period are sufficient after other legally required deductions are made.

2. Authorization for membership dues deduction herein under shall remain in effect during the term hereof unless revoked by the employee.

Revocation of deductions shall be accepted by the City only during the first week of July or January to be effective the following payroll period. The City will notify the Union of any revocations submitted to it.

3. The City shall not make dues deductions for Unit employees on behalf of any other employee organization (as defined in the Meet and Confer Ordinance) during the term of this Memorandum. At each scheduled Labor Management Committee meeting, the City shall provide to the Union a list of any exceptions to this provision arising from transfers between any other Unit.

4. It is agreed that the City assumes no liability except for its gross negligence on account of any actions taken pursuant to this section. The City will however, as promptly as technically possible, implement changes brought to its attention. The City shall at the written request of the Union during the term of this agreement make changes in the amount of deduction hereunder for the general membership provided cost for implementing such changes shall be reimbursed by the Union.

F. Facilities and Services

1. The Union through its designated representative, may distribute materials on the City premises (buildings and grounds) before and after scheduled working hours or in non-work areas during scheduled work hours provided that both the employee distributing and the employee receiving such materials are on non-work periods.

2. The City shall provide the Union with accessible bulletin boards at mutually agreed upon locations. The City shall grant sole and exclusive use of such bulletin boards to the Union.

3. Materials which are abusive of any person or organization, which conflict with laws regulating the political activities of City employees, and which are disruptive of the City's operations may not be posted or distributed.

4. The Union may grieve any refusal by the City to approve posting or distributing of materials. The City will not arbitrarily disapprove materials.

5. The City shall provide the Union, upon request, a listing of Unit employees indicating name, address, job classification, department number, and geographic payroll locator code, and/or a seniority list by job classification. The City will provide these lists on a computer disk that is in a format compatible with the Union's computer.

6. The City will endeavor to maintain remote computer access to the City's intranet for the Union Office.

G. Contracting Out

The City will comply with the provisions of Management Procedure Number 5.501, dated February 7,1994, and notify the Union, in writing, of the City's intent to contract with a private agency for the provision of municipal services. The Union may, within seven (7) calendar days of this notification, request a Labor-Management Committee meeting for the purpose of discussing the potential contract. It is understood by all parties that the Union's exercise of rights granted by this Article shall in no way delay the process outlined in Management Procedure 5.501, nor impede the City's authority to enter into a contractual agreement with a private agency.

The City will provide the union, upon request, with a listing in electronic format of unit employees' name, home address, date of employment, and department. The City will also provide mailing information of all Unit 2 employees at the request of the Union.

The City shall provide the Union a list of all Unit 2 vacancies monthly.

Section 1-4: Rights of Unit Employees

A. All Unit employees have the right to have the Union serve as their "meet and confer" representative as set forth in the Meet and Confer Ordinance without discrimination based on membership or non-membership in the Union or any other organization.

B. Unit employees have the right to be represented by the Union in dealings with the City concerning grievances, and if personally requested by the employee during the conduct of a management initiated investigatory interview concerning allegations focused on the employee, which may result in disciplinary action against the employee for violation of City or department work rules or regulations. Prior to the employee being interviewed, a supervisor will advise the employee of the right to a representative. An interview becomes investigatory when facts or evidence sought by management may result in any disciplinary action against the employee being interviewed. The employee shall be entitled to receive a copy of any statement that the employee is instructed to sign. A Unit member that is under investigation for any discipline, and who is interviewed or requested to respond in writing, will be given a written statement informing the employee of the nature of the investigation and the allegations against the employee. The written statement will also notify the Unit member that the employee has the right to have a representative attend the investigatory meeting. The employee and/or representative may ask for a caucus during the meeting. Prior to the conclusion of the meeting the member or representative will have the opportunity to make a closing statement. An employee under investigation will be notified in writing every three (3) months as to the current status of the investigation. This will include a brief description of the number of known witnesses still to be interviewed and other investigative processes remaining to be completed, as well as an estimated date of completion. The employee shall have a minimum of seventy-two (72) hours excluding weekends (N days) to respond to requests for information concerning an investigation The employee shall have a right to know if his or her accuser is a city employee or citizen/customer, and all allegations against the employee.

If a Union Steward is requested by management to hold over, or is called in from home by a supervisor to represent an employee at a meeting required by

management, the Union Steward will receive overtime compensation for actual time held over or a minimum of one (1) hour if called in from home.

If any Unit member is instructed not to speak to anyone regarding an investigation, this restriction does not apply to speaking to the Union Steward or the Union President or his designee.

Upon request, a Unit member may have documents related to disciplinary actions, which are over ten (10) years old, removed from the employee's personnel file when there have been no incidents or problems of a similar nature within the ten year period immediately preceding the request. Purging requests apply to all files, in all formats, in all locations. The term disciplinary action is defined as:

1. Any discipline given a Unit member that resulted in a suspension of eighty (80) hours or less and,

2. For an infraction which did not result in criminal charges or actions which did not include violent or assault behavior directed at another person or,

3. Any infraction that is no longer considered to be a disciplinary matter under current contemporary department standards in effect at the time of the Unit member's file purge request.

Upon written request, performance evaluations over ten (10) years old will be purged from a unit member's personnel file after ten (10) years as an active employee.

A unit member may make an appointment with the Department's Human Resources Section to purge his/her department file. In the event that documentation eligible for purging is not purged, those documents will not be used as a basis for future discipline. Discipline Notices over five (5) years old will not be considered in disciplinary processes.

C. Unit employees have the right to present their own grievance, in person or by legal counsel.

1. Any Unit member covered hereunder or his representative designated on a written form signed by the employee shall, on request and by appointment, be permitted to examine his departmental personnel file, in the presence of an appropriate supervisory official of the Department.

2. No Unit member shall have any adverse comments entered into a departmental personnel file without the member being informed by a supervisor. The Unit member shall be asked to date and sign such material solely as evidence of being advised of its existence, not as indicating

agreement. If the Unit member requests, he shall receive a copy of the adverse comment.

3. Unit members may, at their discretion, attach rebuttal statements to any material contained in their departmental personnel file, which may be adverse in nature.

D. The City will comply with provisions of A. R.S. Section 12-2506, paragraph D, subparagraph 1, and assume responsibility for actions of any Unit II employee in a legal proceeding for personal injury, property damage, or wrongful death, when it is demonstrated that the employee was performing his regularly assigned duties without malice or any degree of negligence.

E. A Unit employee may request that his Departmental Personnel file and the official Human Resources Department file be purged of any material which is three (3) years old if the employee has received no disciplinary actions during the three year period immediately preceding the request. The request for purging must be in writing and forwarded through official channels to the Department Head who will make the final determination as to the validity of the request. If the request is approved by the Department Head, all materials, both positive and adverse, which are three (3) years old, will be purged. A copy of the purged documents will be given to the employee. After the Department Personnel file has been purged, the approved written request will be forwarded to Labor Relations to have the official Human Resources Department file purged. Purging requests apply to all files, in all formats, in all locations. Discipline notices are exempted from these provisions except as described in section 1.4. B. (The Discipline Notice is the City of Phoenix Notice of Suspension, Demotion, or Dismissal.)

F. The City shall post on employee bulletin boards any new policies and/or revision in City or written department policies and procedures affecting Unit II employees. Notice shall remain posted for not less than twenty-one (21) working days. Review of policy and procedure revisions shall be included in employee meetings and shift briefings when appropriate and practical to do so. The City will notify employees of new or revised written City or Department policies affecting Unit employees as soon after release as possible.

G. A coaching is a verbal discussion with an employee. A coaching is not to be considered a first offense for purposes of progressive discipline. A written record of a coaching may be placed in the supervisor's file for both positive and negative incidents. An employee may receive more than one (1) coaching for a similar matter.

A supervisory counseling is a verbal warning that the supervisor shall document in memo form. A supervisory counseling is not discipline. They are to be used to determine only notice to the employee.

If a supervisory counseling is to be used in any disciplinary or personnel action or any performance rating, the employee will be given the supervisory counseling in memo form, that identifies the behavior requiring improvement, the reason for the improvement, and the consequences of continuing the unacceptable behavior. The memo will contain a line for the employee's signature and above the line the statement: "The employee shall date and sign the supervisory counseling, not as an indication of agreement, but solely as evidence of being advised of its existence." The employee will receive a copy of the memo.

A supervisory counseling will only be retained in the supervisor's file. It will not be placed in the employee's personnel file.

The supervisory counseling will be purged from the supervisor's file after no more than a maximum of one (1) year from the incident, provided no further incidents of a similar nature occur during this one (1) year period.

H. If an employee is not given his/her PMG by the annual review date, the employee's merit increase will be processed within twenty-one (21) calendar days following the above due date and be retroactive to the PMG annual review date. (If PMG is an overall "met").

I. All unit members have the right to be treated in a manner which is fair and impartial.

Section 1-5: Prohibition of Strike and Lockouts

A. The provisions of Section 2( 17) and Section 13 of the Meet and Confer Ordinance are expressly incorporated herein.

B. There shall be no "lockout" by the City during the term hereof.

Section 1-6: New Positions/Classifications

A. The City will notify the Union, in writing, thirty (30) calendar days in advance before any new position or classification is placed permanently within any Field Unit. The City shall notify the Union, in writing, of the results of any Unit II reclassification study no less than ten (1 0) calendar days prior to that study being presented to the Personnel Committee. When the Personnel Committee

agenda is sent to the involved department(s), a copy will also be sent to the Union.

B. The parties agree to consult on the inclusion or exclusion of new classification(s) in the bargaining Unit and will thereafter refer any such matter to the Phoenix Employment Relations Board for appropriate action.

C. The City agrees that except in extraordinary situations, it will promptly notify the Union in advance in writing when significant changes will be made in the duties, responsibilities, training, or experience qualifications in position classification standards resulting in classification changes.

D. Requests for Studies

1. The Union may submit written requests for job classification studies to the Labor-Management Committee.

2. All written requests for classification studies submitted by the Union shall include, but not be limited to, the following information:

a. A full description of the new duties and responsibilities.

b. A full explanation of why the Union feels the position(s) should be reclassified.

c. A list of comparative positions/classifications that led to the Union's request.

d. Such other information as is normally considered relevant to a classification review.

3. The results of the audit of any classification study shall be subject to review by the City's Personnel Committee in accordance with existing procedures in that respect.

4. The City will inform the Union when Union requested classification studies commence and will inform the Union of progress on the study at sixty (60) day intervals at the scheduled Labor Management Committee meetings.

5. The City and Union agree that the PALM Committee will have the same power and authority as the City and Union to submit recommendations for pilot plans involving reclassifications and compensation benefits that are a result of the Water Services Reengineering Project to Classification, Compensation and Benefits for timely evaluation.

E. Classifications will be reviewed by the Classification and Compensation section

in the following priority, for appropriate compensation only. The first priority study will be started in the first year of the M.O.U., followed by the priorities in order.

First contract year:

1 . Electricians (All)

2. Airport Security Guards (All)

3. Equipment Mechanics (Assigned to Specialty shops)

4. Trades Helpers (All)

5. Heavy Equipment Mechanic (All)

In the second year of the M.O.U. the top priority will also be started.

Second contract year:

1. Airport Security Guards

2. Equipment Mechanics (Assigned to Specialty shops)

3. Trades Helpers (All)

4. Heavy Equipment Mechanic (All)

ARTICLE 2: Grievance/Arbitration/Labor Management

Section 2-1: Grievance Procedure

It is understood by the parties that the benefits granted by this Article shall not be interpreted or applied as requiring the City to count as time worked any hours or fractions of hours spent outside the employee's work shift in pursuit of benefits provided by this Article. The City shall count as time worked any hours or fractions of hours spent within the employee's regular work shift in pursuit of benefits provided by this Article.

A. Informal Resolution

The parties agree that the first attempt to resolve employee complaints arising under this M.O.U. will be an informal discussion between the employee and his immediate non-Unit supervisor only.

It is the responsibility of Unit members who believe that they have a bona fide complaint concerning their working conditions to promptly inform and discuss it with their immediate (non-Unit) supervisor in order to, in good faith, endeavor to clarify the matter expeditiously and informally at the employee-immediate supervisor level.

If such informal discussion does not resolve the problem to the Unit member's satisfaction, and if the complaint constitutes a grievance herein defined, the Unit member may file a formal grievance in accordance with the following procedure.

B. Definition of Grievance

A "grievance" is a written allegation by a Unit employee, submitted as herein specified, claiming violation(s) of the specific express terms of this Memorandum for which there is no Civil Service or other specific method of review provided by State or City law.

C. Procedure

In processing a formal grievance, the following procedure shall apply:

Step I

The Unit employee shall reduce his grievance to writing by signing and completing all parts of the grievance form provided by the City, and submit it to his immediate (non-Unit) supervisor within fifteen (15) calendar days of the initial commencement of the occurrence being grieved or when the employee had reasonable cause to become aware of such occurrence. Either party may then request that a meeting be held concerning the grievance or they may mutually agree that no meeting be held. The immediate non-Unit supervisor shall, within ten (10) calendar days of having received the written grievance or such meeting, whichever is later, submit his response thereto in writing to the grievant and the grievant's representative, if any.

Step II

If the written response of the immediate non-Unit supervisor does not result in a resolution of the grievance, the grievant may appeal the grievance by signing and completing the City form and presenting it to second level of review within ten (10) calendar days of the grievant's receipt of supervisor's response. Either party may request that a meeting be held concerning the grievance or may mutually agree that no meeting be held. Within ten (10) calendar days of having received the written grievance or the meeting, whichever is later, the second level of review shall submit his response to the grievance to the grievant and the grievant's representative, if any.

Step III

If the response of the second level of review does not result in resolution of the grievance, the grievant may appeal the grievance by signing and completing the City form and presenting it to the third level of review, the Department Head or his designee, within ten (10) calendar days of the grievant's receipt of the level two response. Either party may request that a meeting be held concerning the grievance or may mutually agree that no meeting be held. Within ten (10) calendar days of having received the written grievance or the meeting, whichever is later, the

third level of review shall submit his response to the grievance to the grievant and the grievant's representative, if any.

Step IV

If the response of the third level of review does not result in resolution of the grievance, the grievant and Union may, within ten (10) calendar days of having received the Step III response, appeal the grievance by signing and completing the City form and presenting it to the Grievance Committee. The Grievance Committee shall be composed of:

Chairman:

Member:

A member of the City Manager's Office designated by the City Manager.

A City of Phoenix Department Director.

The President of the Local or the President's designee.

At the beginning of each contract year, the Union and the City will each select three Department Directors to serve as Grievance Committee members. No selected Department Director will serve as a committee member when the grievance involves his/her department. Staff support to the Grievance Committee will be provided by the Human Resources Department.

This Grievance Committee composition is a pilot program for the 2010-2012 MOU contract only. Both parties must mutually agree to adopt this Grievance Committee composition beyond this contract, otherwise the Grievance Committee composition reverts to the previous composition of a member of the City Manager's Office, Labor Relations Administrator and President of the Local or designees on June 30, 2012.

The Grievance Committee shall, within ten (10) calendar days of receipt of the appeal, schedule a hearing regarding the grievance at which the grievant shall be afforded the opportunity to fully present his position and to be represented. The Grievance Committee shall, within ten (10) calendar days of the conclusion of the hearing, make advisory recommendation on the grievance and submit it to the City Manager for final determination for those employees who have elected to use this procedure instead of arbitration.

In lieu of such hearing, the grievant and the Union may jointly invoke the following procedure by submitting the written notice to the Labor Relations Division within ten (10) calendar days of having received the Step III response. If the grievant and the Union so elect in writing within the above time limit, in lieu of such Grievance Committee hearing, the grievance may be reviewed by an arbitrator.

The parties or their designated representatives shall agree on an arbitrator, and if they are unable to agree on an arbitrator within a reasonable time, either party may request the Federal Mediation and Conciliation Service to submit to them a list of seven (7) arbitrators who have had experience in the public sector. The parties shall, within seven (7) calendar days of the receipt of said list, select the arbitrator by alternately striking names from the said list until one-name remains. Such person shall then become the arbitrator. The arbitrator so selected shall hold a hearing as expeditiously as possible at a time and place convenient to the parties, and shall be bound by the following:

1. The arbitrator shall neither add to, detract from, nor modify the language of the Memorandum or of Departmental rules and regulations in considering any issue properly before him.

2. The arbitrator shall be expressly confined to the precise issues submitted and shall have no authority to consider any other issue.

3. The arbitrator shall be bound by applicable State and City Law.

The arbitrator shall submit his findings and advisory recommendations to the grievant and the City Manager, or their designated representatives. The costs of the arbitrator and any other mutually incurred costs shall be borne equally by the parties.

Step V

The City Manager shall, within ten (10) calendar days of the receipt of the arbitrator's written findings and recommendations, make the final determination of the grievance and submit it in writing to the grievant and designated representative.

D. Union Grievance

The Union may, in its own name, file a grievance that alleges violation by the City of the rights accorded to the Union by the specific terms of Article 1, Section 1-3 of this Memorandum. The Union shall file such grievance at Step III of the procedure. All other grievances must be filed and signed by Unit employees subject to the provisions of this Article.

E. Group Grievance

When more than one Unit employee claims the same violation of the same rights allegedly accorded by this Memorandum, and such claims arise at substantially the same time and out of the same circumstances, a single group grievance may be filed in the name of all such employees. Such group grievances shall be filed at the step of this

procedure which provides the lowest level of common supervision having authority over all named grievants. Each Unit employee that is a party grievant must be named and must sign such group grievance.

F. Time Limits

Failure of the City Management representatives to comply with time limits specified in Section 2-1 C shall entitle the grievant to appeal to the next level of review; and failure of the grievant to comply with said time limits shall constitute abandonment of the grievance. Except, however, that the parties may extend time limits by mutual written agreement in advance.

G. Notice to Union of Grievance Resolution

The City will put the Union on notice of proposed final resolutions of grievances where the Union has not been designated as the grievant's representative for the purpose of allowing the Union to ascertain that a final resolution will not be contrary to the terms of this Memorandum.

The City will ensure that a copy of every MOU grievance filed by a Unit member, including the response from management, is forwarded to the Union at each step of the process.

H. The City will not discriminate against employees because of their exercise of rights granted by this Article.

I. Employer grievances, should they occur as a result of official Union activities or actions, including the failure to act as required under this agreement, will be presented directly to the Union President or any Officer of the Union within ten (10) calendar days of the occurrence prompting the grievance, or within ten (10) calendar days of the date upon which the employer became aware of the situation prompting the grievance. The President, or designee, shall, in each case, provide a written answer within ten (10) calendar days from receipt of the grievance.

Unresolved employer grievances may be submitted to arbitration pursuant to Step IV herein; provided that the employer shall bear the cost of the services of the arbitrator.

J. After the department head's decision, but prior to review by the Grievance Committee, the parties involved may mutually agree to submit the grievance to the Labor Relations Administrator. The grievance as originally written and the attached response from the department head must be submitted to the Labor Relations Division within ten (10) calendar days of receipt of the department head's answer. The Labor Relations Administrator shall meet with the department head, the

employee, and his/her representatives, if any, in an attempt to resolve the grievance within ten (10) calendar days. The Labor Relations Administrator shall then submit written recommendations for resolution to the employee, his/her representatives, if any, and department head within ten (10) calendar days of the meeting.

If the parties are unable to resolve the grievance in accordance with this section, the employee may appeal the grievance to Step IV within ten (10) calendar days from receipt of the Labor Relations Administrator's response.

The Union and the City agree to meet at regular intervals (as defined in Article 2 Section 2-2 Labor/Management Committee) to find ways to improve the grievance procedures.

Section 2-1 : Arbitration

A. Independent Arbitrator

Any Unit member who is a classified employee having completed the prescribed probationary period who has received a disciplinary demotion, suspension, or discharge, and has a right to appeal that disciplinary action pursuant to the Personnel Rules, may under the provisions of this article request the Civil Service Board appoint as a hearing officer an independent arbitrator selected pursuant to the procedures described in Section 2-1 C below.

B. Appeal

The Union, on behalf of the employee, may request the selection of an independent arbitrator as the hearing officer for a Civil Service Board appeal of a disciplinary action. Such request must be made within fourteen (14) calendar days after the date of service of notice of the order of suspension, demotion, or dismissal on him personally, or twenty-one (21) calendar days from the date of mailing by certified mail the notice of the order of suspension, demotion, or dismissal. The request must be in writing and must state specific allegations in the discipline notice with which the employee disagrees.

The request must be personally delivered to the Board or deposited in the United States mail, certified return receipt requested, postage prepaid, addressed to the office of the Civil Service Board, within the above-stated time.

The Union, on behalf of the employee, shall also immediately thereafter file copies thereof with the complainant department head and the City Attorney. At the time the Union files the request for hearing, it shall set forth whether the hearing will be public or private.

C. Selection of Arbitrator

If the request for an independent arbitrator to be appointed as a hearing officer is approved by the Civil Service Board, the Labor Relations Administrator or his designated representative on behalf of the City and the Union president or his designated representative on behalf of the employee shall agree on an independent arbitrator within ten (10) calendar days after approval and appointment by the Board of the appeal request. If an agreement on an independent arbitrator cannot be reached within said ten (10) calendar days, either party may request that the Federal Mediation and Conciliation Service (FMCS) or the American Arbitration Association (AAA) provide a list with the names of seven (7) arbitrators with public sector experience. In requesting such lists, the parties shall stipulate that arbitrators should be from within Arizona.

The parties shall, within seven (7) calendar days of the receipt of the list, select the arbitrator by striking names alternately until one-name remains. The remaining name shall be designated as the independent arbitrator appointed by the Civil Service Board as the hearing officer for the appeal. The parties shall jointly communicate with the chosen arbitrator to advise him of the appointment.

In the event that the chosen arbitrator is unable to accept the appointment as hearing officer, the parties shall either select another independent arbitrator from a new list in the same manner as described above, or if mutually agreeable select another independent arbitrator from the original list. The independent arbitrator chosen shall be designated as the hearing officer appointed by the Civil Service Board for the appeal.

D. Time for Hearing

When possible the hearing date shall be set within thirty (30) calendar days from the request. Delays may be granted by mutual agreement of the parties. However, any such delay occurring at the request of the Union, shall automatically be excluded from any calculations of back pay to the employees, if any, as determined by the Civil Service Board.

E. Hearing Procedures

The hearing procedures will be the same as the procedures set forth in Rule 22d, Personnel Rules of the City of Phoenix. In the conduct of the hearing, the hearing officer shall not be bound by the technical rules of evidence, nor shall informality in any of the proceedings or in the manner of taking testimony invalidate any order, decision, rule, or regulation made or approved by the Civil Service Board.

F. Witnesses

An employee appellant, or an employee subpoenaed as a witness, shall be granted a leave of absence from his/her regularly assigned duties during his/her regularly assigned work hours without loss of pay for the time.

At the request of either party, the arbitrator shall order that any witness who will testify during the hearing be excluded from the hearing room until such time as they testify. The City and the Union may exclude from the operation of this provision one representative each of the City and the local Union.

G. Proposed Findings; Objections to Report

Either party may file with the hearing officer written proposed findings of fact and conclusions within seven (7) calendar days of the conclusion of the hearing. A copy of such proposed findings and conclusions shall be served on the other party at the same time as filing with the hearing officer.

No later than two (2) calendar days before the Civil Service Board meeting where the appeal has been scheduled for hearing either party may file with the Civil Service Board written objections to the hearing officer's report. A copy of such objections shall be served on the other party at the same time as filing with the Civil Service Board. No post-hearing evidence shall be submitted.

H. Requirements

The independent arbitrator selected by the parties and appointed by the Civil Service Board pursuant to this article shall be bound by the following:

1. The independent arbitrator shall neither add to, detract from, nor modify the language of this Memorandum of Understanding.

2. The independent arbitrator shall be expressly confined to the precise issues submitted and shall have no authority to consider any other issue.

3. The independent arbitrator shall be bound by applicable Federal, State, and City laws.

I. Report

Within two (2) weeks of the conclusion of the hearing, the hearing officer shall forward all records and the report containing a statement of the findings of fact, conclusions, and recommendations concerning the appeal to the Civil Service Board and send a copy of the report to the parties. The hearing officer may recommend to the Civil Service Board the discipline be upheld or modified, or rescinded pursuant to Personnel Rule 22 (e).

J. Costs

The cost of the independent arbitrator and other costs related to obtaining said arbitrator shall be borne equally by the parties. Each party will be responsible for its own costs incurred in the hearing process, including but not limited to costs for legal services, service of subpoenas, and expert witnesses.

K. Civil Service Board

It is expressly understood that this article shall not impinge on the powers and duties of the Civil Service Board as provided for in Section 3 of Chapter XXV, Phoenix City Charter and Rule 22, Personnel Rules of the City of Phoenix.

L. Representation

The parties agree that for the purpose of this article the City will be represented by the Labor Relations Administrator for the City of Phoenix or designee and the employee will be represented by the President of AFSCME, Local 2384 or designee.

Section 2-2: Labor-Management Committee

A. There shall be a Labor-Management Committee consisting of two (2) representatives of the Union and two (2) representatives of the City. The purpose of the Committee is to facilitate improved labor-management relationships by providing a forum for the free discussion of mutual concerns and to attempt to resolve problems brought to its attention.

B. The Committee shall meet bi-monthly or at other mutually scheduled times.

C. The Chair of the committee shall be rotated between the members. The members shall, in advance of a meeting, provide the meeting's chair with proposed agenda items, and the chair shall provide the members with the meeting agenda in advance of the meeting.

D. Representatives of the Union on the committee who are employees shall not lose payor benefits for meetings mutually scheduled during their duty time.

E. The Union shall be advised of management recommendations for contracting of work presently being performed by Unit employees which would directly result in a reduction in the number of permanent Unit positions during the term of this agreement. The Union may request an opportunity to discuss these recommendations in the Labor-Management Committee prior to any final recommendation to the City Council. Failure by the City to notify the Union under this Article may be subject to the Grievance Procedure of this Memorandum.

The Management recommendations, and final decision thereon by the City, shall not be subject to the Grievance Procedure (Article 2 Section 2-1) of this Memorandum.

F. The Union and Management agree to meet to attempt to resolve outstanding issues related to duty and off-duty time for Civil Service Board/Phoenix Employment Relations Board meetings/hearings.

The Union and Management agree to meet concerning the issues of providing prescription safety glasses to Unit employees, as well as an increase in safety boot vouchers.

The issue of employee parking at Sky Harbor Airport Terminal buildings will be discussed.

The Union and Management agree to meet concerning the following issues: work schedules and shifts, uniforms and personal protective equipment, and call out and show up pay.

Any signed/dated written Labor/Management agreements with the signatures of both parties and the Chairperson will be binding on the parties for the remaining term of the M.O.U.

Section 2-3: Health and Safety Committee

It is understood by the parties that the benefits granted by this Article shall not be interpreted or applied as requiring the employer to count as time worked, any hours or fractions of hours spent outside the employee's work shift in pursuit of benefits provided by this Article. The employer shall count as time worked any hours or fractions of hours spent within the employee's regular work shift in pursuit of benefits provided by this Article.

A. The City will continue to undertake all reasonable efforts to provide for employee health and safety in accordance with the State's Occupational Safety and Health Law.

A Unit employee may file, without fear of discipline, retaliation, or discrimination, a grievance (Article 2 Section 2-1) when, in his best judgment, the City has failed to comply with specific safety and health standards promulgated by local, state, and federal regulations.

The City will continue its practice of providing personal protective equipment to protect employees from recognized safety and health hazards.

B. In order to facilitate this policy, a joint committee entitled "Health and Safety Committee" shall be established. This committee shall be composed of two (2) Unit employees appointed by the Union and two (2) City representatives as designated by the City Manager. The chair shall rotate among the members.

C. The committee shall meet quarterly or at other mutually scheduled times to consider on-the-job safety matters referred to it by the existing departmental safety committees and safety officers, or otherwise coming to its attention, and shall advise Department Heads and the City Manager concerning on-the-job safety and health matters.

All written recommendations of the committee shall be submitted to the Department Head concerned and to the City Manager.

D. In the discharge of its function, the committee shall be guided by the applicable regulations of the State's OSHA agency, and the City's existing practices and rules relating to safety and health, and formulate suggested changes.

E. Employee members of the committee shall not lose payor benefits for meetings mutually scheduled during their duty time. Union members assigned to the Health and Safety Committee shall be permitted to attend Department Health and Safety Committee meetings.

ARTICLE 3: Compensation/Wages

Section 3-1: Wages

A. The total negotiated compensation for the contract year 2010-11 will be an economic concession valued at 3.2%. These concessions will be effective July 12,2010 and allocated as follows:

First, the combined increases in health, dental and life insurance result in a credit to the unit of .4% in total compensation. This amount continues the $150 monthly allowance for Post Employment Health Plan accounts (PEHP) for all qualifying employees eligible to retire after August 1, 2022. (The date of an individual's retirement eligibility was determined on August 1, 2007).

Second, employee wages are reduced by 1%.

Third, the employer deferred compensation contribution is reduced by 2.9%.

Fourth, all compensatory time conversion is suspended.

Fifth, suspend 12 hour rule.

Sixth, fifty percent (50%) vacation buyback is suspended.

B. For the contract year 2011-2012, the 2010-2011 economic concessions will continue up to June 30, 2012 (for purposes of Meet and Confer for the 2012 - 2014 contract), unless one of the following triggers are met:

Revenue estimates for 2009-2010 and 2010-2011 shown in Attachment B assume the recently adopted food tax begins on April 1, 2010 and remains in effect throughout the 2010-2012 contract period.

If fiscal year 2010-2011 General Fund revenue growth over the prior 2009-2010 fiscal year, as described in Attachment B, is 6.0% or more, then 2.0% Total Compensation will be restored to Employees retroactive to the first full pay period in July 2011.

If fiscal year 2010-2011 General Fund revenue growth over the prior 2009-2010 fiscal year, as described in Attachment B, is 9.0% or more, then 3.2% Total Compensation will be restored to Employees retroactive to the first full pay period in July 2011.

By September 14, 2011, the Budget and Research Director will submit a report to the City Manager detailing 2010-2011 actual General Fund revenues. This report shall provide revenue amounts and rates of growth over the prior 2009-2010 year. This report shall be used to determine if any Total Compensation restoration is due to employees.

In addition, the unit will be credited with no more than .4% in total compensation for health, dental, and life insurance cost increases. The actual increases will be converted to a total compensation equivalent, assuming continuation of already agreed to cost-sharing, and will be calculated in the way it has been historically. This calculation will occur once the recommendations of the Health Care Task Force are approved, and will continue the $150 monthly allowance for Post Employment Health Plan accounts (PEHP) for all qualifying employees eligible to retire after August 1, 2022. (The date of an individual's retirement eligibility was determined on August 1, 2007). If the actual total compensation equivalent is more than .4%, then wages in effect July 11, 2011 will be adjusted downward to account for the difference.

Economic concessions will be restored to the levels in effect as of June 30, 2010 on June 30, 2012 (for purposes of Meet and Confer for the 2012 - 2014 contract), except for any wage reduction attributed to health, dental, and life insurance cost increases described above.

C. It is understood that for implementation purposes, the practice of rounding off fractional cents shall be done in accordance with universally accepted mathematical and accounting principles.

D. The term "Pay Schedule" shall mean the schedule computed and published by the Human Resources Department for payroll purposes.

Section 3-1 A: Longevity-Performance Pay

Longevity-Performance Pay

In recognition of continuous service and overall performance, the City agrees to the following longevity-performance pay formula for Unit II employees.

A. Pay Benefit:

On November 15, 2010 (paid December 3, 2010), May 30, 2011 (paid June 17, 2011), November 14, 2011 (paid December 2, 2011), and May 28, 2012 (paid June 15, 2012), unit members who have completed at least six (6) years of continuous fulltime service and who meet the additional qualifications specified in this section shall qualify for one hundred and three dollars ($103.00) for the completion of each year of continuous full-time service in excess of five (5) years, up to an annual maximum of three thousand five hundred and two dollars ($3,502) at the completion of 22 years of continuous full time service.

On November 15, 2010 (paid December 3, 2010), May 30, 2011 (paid June 17, 2011), November 14, 2011 (paid December 2, 2011), and May 28, 2012 (paid June 15, 2012), unit members who have completed twenty three (23) years or more of continuous full-time service and who meet the additional qualifications specified in this section shall qualify for one hundred thirty-eight dollars and eighty-nine cents ($138.89) for the completion of each year of continuous full-time service in excess of five (5) years, up to annual maximum of six thousand one hundred twelve dollars ($6,112) at the completion of twenty-seven (27) years.

B. Qualifications:

1. An employee must have completed at least one year of continuous fulltime service at the top step in his classification.

Qualifications for longevity pay are made in the base class and will not be affected by movement into or out of assignment positions. As well, longevity will not be affected by movement to positions within the same pay range.

When a position is reclassified to a higher classification, or when a classification is assigned to a higher pay range, incumbents who are receiving longevity pay shall be moved to that step of the new range which corresponds to the closest to their combined base pay and previous longevity amount (incumbent's last semi-annual payment times two), and which does not result in a decrease from that combined amount. The placement in the new range will be limited to the maximum step in the range. If the reclassification or pay range change results in only a maximum possible one-range increase and the incumbent is receiving longevity pay, he/she will be moved to the top step and continue to be eligible for longevity pay.

2. An employee must have completed six (6) years of continuous full-time service.

3. An employee must have received an overall performance rating of "meets standards" or better on his latest scheduled performance evaluation on file in the Human Resources Department.

4. An employee must be on full-time active status. Employees on industrial leave shall qualify for this payment for only the first year of the industrial leave. However, the entire period of industrial leave shall qualify as continuous service when the employee returns to active employment.

C. Terms of Payment:

1. Payments will be made within thirty (30) days of the qualifying date.

2. Employees who separate from City employment after the qualifying date but prior to the payment date shall receive the payment in their termination pay.

3. The longevity payment will be included in the regular paycheck instead of being paid in a separate warrant.

Section 3-2: Overtime

A. Overtime is defined as time assigned and worked beyond the regularly scheduled workweek or daily work shift; it being understood that overtime for Unit members who normally work a daily work shift of eight (8) consecutive, including a paid meal period on the job, is defined as time assigned and worked in excess of forty (40) hours in a seven (7) day work period, or eight (8) hours per daily shift including paid meal periods. In addition, when an employee is assigned and works two (2) eight (8) hour shifts, and/or two (2) ten (10) hour shifts, or any combination of the two shifts, the second of which commences less than twelve (ta 12) hours after the regularly scheduled conclusion of the first, that amount of time falling within said twelve (12) hour period is deemed overtime for purposes of Section 3-2 D below, except, however, that such twelve (ta 12) hour rule does not apply to regular shift change situations, relief positions, and positions in the classification of Event Services Worker at the Phoenix Convention Center. The twelve (12) hour rule also does not apply if an employee works less than a full shift either before or after his/her regular shift.

For the 2010-2012 contract, this twelve (12) hour rule benefit is suspended. It will be restored as of June 30, 2012 (for purposes of Meet and Confer for the 2012-2014 contract).

B. Duly authorized paid leave time shall be considered as time worked for the purposes of the regularly scheduled workweek (but not daily work shift).

C. Overtime shall be worked and shall be allowed if assigned by the non-Unit supervisor or other authorized representative of the City.

D. Overtime work will be compensated at one and one-half (1 1/2) times the regular rate, which will be computed in accordance with provisions of the Fair Labor Standards Act. Such payment will commence after the first seven (7) minutes.

E. In lieu of cash payment, a Unit member may request compensatory time credits up to a maximum accumulation of two hundred and ten (210) hours effective July 1, 2008; increase to two hundred and fifteen (215) hours effective July 1,2009. Authorized overtime hours worked in excess of the maximum accumulation shall be paid in cash. The request for compensatory time credit must be made at the time the overtime is worked. The Department Head shall make the final determination on the method of payment (either cash or compensatory time). Use of compensatory time off shall be subject to departmental approval and scheduling.

F. Compensatory Time Conversion

A unit member may convert accumulated compensatory time credits to cash twice per MOU year, up to a maximum of seventy (70) hours by notifying the Department Head in writing of such intent either July and/or November. Payment will be made on or before August 31 or November 30. Payment can be made in a separate warrant if requested by the employee.

For the 2010-2012 contract, this compensatory time conversion benefit is suspended. It will be restored as of June 30, 2012 (for purposes of Meet and Confer for the 2012-2014 contract).

G. The City shall endeavor to distribute the opportunity for non-standby overtime equally between employees or crews of employees within the same classification and work location.

Records of overtime worked by employees shall be posted on a quarterly basis on Union bulletin boards. In addition, records of overtime worked by Unit members shall be made available for inspection by an authorized representative of the Union upon advance request and at reasonable times.

H. Overtime shall be voluntary, except however, the City reserves the right to assign overtime in the event insufficient employees volunteer, or to avoid inadequate staffing, or to ensure service delivery, or to conduct mandatory training.

I. Where a ten (10) hour, four (4) day workweek schedule is implemented, overtime is defined as time assigned and worked beyond ten (10) hours a day or forty (40) hours a week.

Section 3-2A: Call Out Pay

The eight (8) hour period before the start of a Unit employee's regular shift is to be called "rest time." If an employee is called out during this time, the employee shall be allowed to adjust their work hours up to 4 hours (flex time) to allow the employee to have proper rest before the start of the employee's shift, whenever possible at the supervisor's discretion. Example: An employee starts at 6 am, and is allowed to start at up to 10 am to 8 pm.

An employee shall have a minimum of three (3) hours' pay at overtime rates when called out for work after going home from a shift, or when called out for overtime work while on standby pay.

Overtime for this call-out shall begin when employees report to the place where they are instructed to report and shall terminate forty-five (45) minutes after being relieved from duty. These forty-five (45) minutes travel time shall be included in the minimum guarantee and shall be paid only if the total work and allowed travel time exceed the minimum.

Travel time shall not apply when the employee is working on overtime which was planned in advance. An employee requested to report early, before the normal starting time of the shift, shall not be eligible for travel time, but would qualify for overtime for the extra time worked.

Provisions of this section shall be interpreted in a manner which complies with the Fair Labor Standards Act.

Section 3-3: Out-ot-Class Pay

A Unit employee who is temporarily required to serve in a regular authorized position in a higher classification shall be compensated at a higher rate of pay in accordance with the following:

A. To be eligible for the additional compensation, the Unit employee must first accumulate ten (10) regular working shifts of assignment in the higher class within any twenty-four (24) month period. Satisfactory performance during a previous appointment to the higher class will be credited to the qualifying period. The days of out-of-class will be credited to the qualifying period. The days of out-of-class assignment need not be consecutive. Once this qualification is satisfied, no additional re-qualification will be required. In addition, out-of-class credit shall be

given for out-of-class work for five (5) hours work for a ten (10) hour shift and for four (4) hours work for an eight (8) hour shift.

B. Temporary assignments out-of-class shall be recorded only in full shift units. A Unit employee working out-of-class for five (5) hours for a ten (10) hour shift or four (4) hours for an eight (8) hour shift shall be credited with working out-of-class for the entire shift.

C. To qualify for out-of-class pay, a Unit employee must be given the assignment in writing by a non-Unit supervisor or other authorized management representative of the City.

D. Time worked in a higher class shall not earn credits toward the completion of probationary requirements in the higher class. Such time, however, shall be submitted by the employee as creditable experience in promotional examinations for the higher class.

E. A Unit member who has qualified under these provisions shall be compensated at the minimum rate established for the higher class for each completed work shift served in the higher class. In the event of overlapping Unit salary ranges, a minimum one-step differential shall be paid for out-of-class assignments into Unit classifications. The higher rate of pay shall be used in computing overtime when authorized overtime is served in out-of-class work assignments. The overtime rate shall be the rate established by the overtime regulations that apply to the higher classification.

Section 3-4: Sick Leave Conversion at Retirement

Effective July 8, 2002, the following benefits shall apply:

Upon retirement, bargaining Unit employees with a minimum of 750 hours of accrued and unused sick leave, excluding the first 250 hours, will be paid for 25% of the remaining hours as base hourly wage.

Section 3-5: Shift Differential Pay

Unit employees shall receive ninety cents ($0.90) per hour in addition to their regular rate of pay when working a night shift which ends at or after 9:00 p.m., and before midnight, and one dollar and twenty-five cents ($1.25) per hour in addition to their regular rate of pay when working a night shift which includes work during the period after midnight to 4:00 a.m.

Employees shall receive shift premium pay only for hours scheduled and worked, and not while on paid leave time.

Shift premium pay shall continue to be paid at the rate of the regular shift for any additional hours worked following the regular shift. Effective July 1, 1999, night shift premium pay applies to regular part-time employees.

Section 3-SA: Weekend Shift Differential Pay

Employees shall receive shift premium pay only for hours scheduled and worked, and not while on paid leave time.

Effective July 10,2006, a Unit member shall receive forty cents ($0.40) per hour in addition to his base hourly rate of pay and any other shift differential or any other premium pay he may be receiving for working a weekend shift. A designated weekend shift is defined as any shift that starts on or after 2:00 p.m., on Friday, and continuing through any shift that starts on or before, but not after 11 :59 p.m., on Sunday.

A Unit member shall receive weekend shift pay differential only for hours scheduled and worked, and not while on paid leave.

A Unit member who is called out and works between 2:00 p.m., on Friday and 11 :59 p.m., on Sunday, will be paid weekend shift differential for all hours worked at the rate specified in this article. If a Unit member was called out while on stand-by status, he will not receive weekend shift differential.

Section 3-6: Stand-By Pay

When a Unit member is required to be available for call-out outside the employee's regular work schedule, the member shall be compensated for such assigned stand-by hours at two dollars ($2.00) per hour. Starting in the first pay period in July 2007, stand by pay shall increase to two dollars and fifty cents ($2.50) per hour. Employees serving in stand-by assignments shall be subject to contact requirements as provided for by the Department Head.

Section 3-7: Show-Up Time

Except in emergencies, an employee who is scheduled to report for work, has not been notified to the contrary, and presents himself for work as scheduled, shall be paid for at least four (4) hours at the applicable rate of pay. If work on the employee's regular job is not available for reasons beyond his control, the City may assign the employee

substitute work. In the event scheduled work is interrupted due to conditions beyond the City's control and substitute work is not available to be assigned, affected employees shall be paid for four (4) hours at the regular rate of pay, beginning at release, or to the end of the scheduled work shift, whichever occurs first.

Employees released hereunder prior to the end of their scheduled shift may be required to stand by and keep themselves available for immediate call-back during the balance of their scheduled shift (for which time they shall be entitled to stand-by pay under Article 3, Section 3-6, "Stand-By Pay" hereof). An employee shall have the option of using either vacation time or compensatory time for the balance of his regular shift. Employees called back to work shall be entitled to their regular pay only and not any premium for work performed during the balance of their regularly scheduled shift.

Section 3-8: Jury Duty

A Unit employee called for jury duty or subpoenaed by a court as a witness shall be granted a leave of absence from municipal duties without loss of pay for the time actually required for such service and reasonable travel time and shall, if he chooses, retain jury or witness pay, except where such testimony or witness duty is the result of an employee's official duties as a City employee.

To be eligible for paid leave for jury or witness duty, an employee must present verification of his call to jury duty or witness duty.

Paid witness leave shall not be allowed when the Unit employee is the defendant or plaintiff in a court action.

Section 3-9: Deferred Compensation Program

The City will contribute 3.6% of the annual base wage to a deferred compensation fund for each Unit employee for each year of the M.O.U.

For the 2010-2012 contract, this Deferred Compensation Program benefit is reduced by 2.9% to .7%. It will be restored as of June 30, 2012 (for purposes of Meet and Confer for the 2012 - 2014 contract).

ARTICLE 4: Hours of Work/Working Conditions

Section 4-1: Hours of Work

A. This Article is intended to define the normal hours of work and to provide the basis for calculation and payment of overtime pursuant to Article 3, Section 3-2.

B. The work week shall only consist of a schedule of consecutive work days in a seven (7) calendar day pre-established work period, except in the Equipment Management Division of Public Works Department. Any changes to the consecutive workday schedule will be made by mutual agreement between AFSCME 2384 and the City on the 4 day, 10 hour work shift.

C. Within a five (5) day work schedule, the work day will consist of eight (8) hours of work within any twenty-four (24) hours in a pre-established work schedule, excluding relief positions. Within a four (4) day work schedule, the work day will consist of ten (10) hours of work within any twenty-four (24) hours in a pre-established work schedule, excluding relief positions.

The City and the Union recognize that no regularly scheduled shift lengths, other than those outlined in Article 4, shall be observed in Field Unit II.

D. Relief Crews

At the 91st Avenue and 23rd Avenue Wastewater Treatment Plants, there may be one (1), but no more than one (1), relief crew per plant as determined by management.

E. Permanent regular work schedules showing the employees' shifts, workdays, and hours shall be posted on appropriate department bulletin boards.

F. When changes are to be made by the City on a permanent basis for other than emergency reasons, or where new permanent schedules are to be adopted, the City will notify the affected employees and the Union President, not less than fourteen (14) calendar days in advance and will notify the Union of such changes, prior to actual implementation.

In emergency situations, temporary work schedules may be adopted without the fourteen (14) calendar days notice to the affected employees. "Emergency" shall mean unforeseen operational circumstances.

G. Summer hours shall begin no later than the last Monday in April and shall terminate no earlier than the second Monday in September whenever such scheduling impacts

operations, all of which are within the discretion and control of the City, and where such summer scheduling has been customarily used in the past. Summer scheduling may, at the discretion of the City, be implemented earlier in the year than specified in this section, or terminated later in the year than specified in this section.

H. The City may implement ten (10) hours per day, four (4) days per week work schedules when it is determined by the City that such scheduling is beneficial to City operations.

Section 4-2: Rest and Lunch Periods

Scheduled work shifts shall include meal periods to be observed as follows:

5 DAY WORK WEEK

8 hours

8-1/2 hours

9 hours

4 DAY WORK WEEK

10 hours

10 1/2 hours

11 hours

MEAL PERIOD

Under normal conditions, no less than 30 minutes on the job, paid at straight time.

No less than 30 minutes, unpaid.

No less than 60 minutes, unpaid.

MEAL PERIOD

Under normal conditions, no less than 30 minutes on the job, paid at straight time.

No less than 30 minutes, unpaid.

No less than 60 minutes, unpaid.

Two (2) non-work periods of fifteen (15) minutes during the above scheduled work shifts shall be permitted to promote the health, safety, and efficiency of employees on the job. Activities of employees during those non-work periods shall not be subject to any unreasonable restrictions.

When work demands permit, with a supervisor's approval, a Unit member may combine their thirty (30) minute meal period with one of his fifteen (15) minute rest periods to achieve a forty-five (45) minute meal period. This paid leave time counts as hours worked.

When a unit member works overtime of two (2) hours or more in addition to their daily work shift, they shall be entitled to an additional fifteen (15) minute break. Every additional two (2) hours of overtime will entitle an employee to an additional fifteen (15) minute break.

After four (4) consecutive hours of overtime, a unit member shall be entitled to a paid meal break of thirty (30) minutes, but in no event shall a unit member be entitled to more than one such break for every eight (8) consecutive hours of overtime.

Employees shall be allowed reasonable time, as necessary, for personal clean up prior to the commencement of the lunch and break periods.

Section 4-3: Clean-Up Time

Unit employees will be given time, in keeping with past practice, at the end of a normal daily shift for personal clean up. Such time is in addition to and exclusive of any time the City requires be spent for maintaining equipment.

Section 4-4: Seniority

A. The City shall provide the Union with a list of Unit members showing each Unit member's City employment date and class employment date.

B. Seniority shall be by length of service within a class. If seniority within the class is not determinative, then length of service with the City shall prevail.

C. Seniority shall be used as a factor consistent with established Civil Service procedures in choice of training, work assignments, vacation schedules, and in the determination of layoffs.

Section 4-5: Bump/Bid Procedure Equipment Management Division

Policy: To provide an equitable system for employee selection of shift, days off, and area location, the Union and the City recommend that departments considering the implementation of a bump/bid policy for a designated group of Unit II employees use this article as a guideline in the development of their policy.

A. General Guidelines

1. Annual Bump/Bid

•

There will be a full Bump/Bid each fiscal year, in December, which will become effective the first pay period in January.

2. Interim Bump/Bid

A layoff, a transfer of a vacant position number to another shift or shop, the addition of a permanent position number, a promotion, demotion, dismissal, resignation, or retirement will be filled subject to the in-class Bump/Bid. This means that any time positions become vacant within a particular classification, an open sign-up will be held. Vacant positions will be filled according to the seniority ranking of interested employees within a class.

3. Exceptions

a. The specialties listed below will be exempt from the general Bump/Bid procedure. Employees in these specialties will Bump/Bid only within their specialty and/or section.

1) Motorcycle Mechanics

2)Heavy Equipment Mechanics in the following assignments: -Fire shop

-Oft-road equipment

-Hi-ranger repair

-91 st Ave. Treatment Plant

-Landfills

3) Police substations-Auto Mechanics (master)

-Fire Shop Auto Mechanics

-Equipment Maintenance Helpers

-Equipment Service Worker II

4) Leads

5) Temporary, new hire and promoted employees'

6) Rovers

7) Make-ready shop (all personnel)

8) Service writers

9) Auto Parts Clerk III (annual bump for this class will be held after the physical inventory each year) .

Management reserves the right to place new employees on any shift and location for a six (6) month period for training and evaluation purposes. These employees become subject to the Bump/Bid procedure upon completion of six (6) months'

employment. The day after the due date shown on their six (6) month performance rating will be the effective date.

At the end of the six (6) months, the position occupied by the temporary, new, or promoted employee will become available to the most senior employee who has signed up within the class. The two employees will then "switch" positions until the next Bump/Bid.

b. Positions of employees who have been on long-term industrial leave or light duty, or personal illness, for at least one hundred (100) days, at the time of the annual bump/bid will be excluded from the process. Upon return to regular, full-time employment, management will assign the employee to an available shift and location until the next Bump/Bid. Employees must return to work seven (7) days prior to the original bump/bid posting to be included in the bump/bid.

4. Annual Bump/Bid Completion

All personnel shall be frozen into the position selected, except to bid for openings created as outlined in Section 4-5 A (2) "Interim Bump/Bid."

5. Delegation of Authority

Employees may delegate/select a representative to participate in the bump/bid in their absence. This may be done by completing the official Bump/Bid Authorization Form and presenting it at the designated sign-up time. This form must be signed by the delegating employee and the employee performing the selection. The actual Bump/Bid Sign-up Sheet will be annotated by the employee's representative printing the employee's last name and initialing the entry.

6. Official Notification

The annual bump/bid will be posted, in its entirety, for a minimum of fourteen (14) calendar days prior to the official sign-up date. A copy of the document will be posted at all Equipment Management Division Facilities.

B. Seniority

Seniority within classification will be the principal factor for bumping and/or bidding.

1. Determination of Seniority

Seniority constitutes length of certified status within a class of the City service. When two or more employees have the same length of time in the class, the employee with the longest certified City employment time shall be senior. If a tie still exists, the employee with the least amount of leave of absence without pay (excluding leave of absence due to sickness, injury, or military service) shall have the greater amount of seniority.

2. Dispute Resolution of Seniority

Any disputes concerning the calculation of seniority length will be resolved by the Public Works Department Human Resources Officer using the guidelines identified in the above "Determination of Seniority."

ARTICLE 5: Benefits

Section 5-1 : Health Insurance and Employee Assistance

The City will continue to offer health insurance plans for Unit members.

A. Medical and Dental Insurance

1. Effective August 1, 2004, the City and the Union agree to maintain the current split for the health insurance monthly contribution for both single and family coverage. If there is a rate increase or decrease, the City will pay 80% of the new monthly contribution and the employee will pay 20%.

2. It is understood between the City and the Union that any changes in health insurance benefits or rates shall be effective on or about August 1, and that the City's monthly contributions will not, under any circumstances, exceed the actual premium cost.

B. Employee Assistance Program

The City will continue the Employee Assistance Program, which will provide confidential individual and family counseling to all Unit employees and their eligible dependents. These services will be furnished by an independent contract agency to be chosen by the City.

C. The City agrees to the continuation of a Health Insurance Advisory Committee for the purpose of studying existing plans and to explore alternative plans. The Committee shall include representatives of the City and Local 2384.

Section 5-2: Dental Insurance

The current dental split will also remain the same. If there is a rate increase or decrease, the City will pay 100% of the new monthly contribution for single coverage. If there is a rate increase or decrease, the City will pay 75% of the new monthly contribution, and the employee will pay 25% for family dental coverage.

The City agrees to contribute 100% of the cost to provide dental insurance for single employee coverage, and 75% of the cost for family coverage.

The City agrees to retain the dental insurance plan for Unit members and their qualified dependents. The plan shall consist of eighty percent (80%) payment of reasonable and customary charges covered for preventive and diagnostic services, basic services, and major services. The Plan shall also include an orthodontia benefit providing for eighty percent (80%) payment of reasonable and customary charges up to a maximum lifetime benefit of four thousand dollars ($4,000) per person. This plan is subject to the deductibles and limitations contained in the contract between the dental insurance carrier and the City of Phoenix.

Section 5-3: Life Insurance

The City will provide at no cost to Unit employees off-the-job and on-the-job life and dismemberment insurance with a face value equivalent to the employee's annual base salary rounded up to the next one thousand dollars ($1,000.00) or twenty-five thousand dollars ($25,000.00), whichever is greater; in addition, the City will also provide death in the line of duty insurance with a face value of seventy-five thousand dollars ($75,000.00). It is understood between the City and the Union that any change in life insurance benefits shall be effective on or about August 1. The designated beneficiary of a Unit member will be paid for all accumulated sick leave hours that remain on the City's official file at the time of a line-of-duty death of the Unit member, and payment will be based upon the Unit member's base hourly rate of pay at the time of death. The beneficiary shall be that person designated on the Employee Declaration of Beneficiary card for the City of Phoenix Group Life Insurance Program on file in the City Human Resources Department.

Additionally, the City will provide to each Unit member a $200,000 death benefit covering the Unit member's commutation to and from his City work location. This policy will be consistent with the policy negotiated in 1997 with CIGNA Group Insurance, and will cover the Unit member commute for up to two hours before his shift begins, and two hours after his shift concludes. The Union will only pay the cost of this benefit the first year of the MOU.

In the event of the death of a Unit member while commuting to or from his work location, for a period of two hours each way, the City will continue to pay the full monthly health insurance premium for the spouse and all eligible dependents. This policy will be consistent with the terms of the 1997 agreement between the City of Phoenix and CIGNA Group Insurance, for the payment of a supplementary commutation life insurance policy for each Unit member. The Union will pay the cost of this benefit, if any, the first year of each new MOU period.

Section 5-4: Long-Term Disability Insurance

A. Pursuant to A.R. 2.323, the City will continue the insurance plan covering long term disability for all permanent, full time Unit employees, provided, however, that amendments to this A. R. shall not conflict with the express provisions of the M.O.U. Employees are eligible for coverage after completing one (1) year of full time continuous City employment. After an established three (3) month qualifying period, the plan will provide up to 66 2/3% of the employee's basic monthly salary at the time disability occurs and continue up to age eighty (80). This benefit will be coordinated with leave payments, industrial insurance payments, unemployment compensation, social security benefits, and disability provisions of the retirement plan. It is understood between the City and the Union that any changes in long term disability insurance benefits and/or rates shall be effective on or about August 1.

B. Total disability is defined as follows:

During the first 30 months of benefit payments, an employee being unable, as a result of illness or injury, to perform any and every duty pertaining to an employee's current position. Thereafter, the term "total disability" shall mean an employee's being unable to perform work in any type of occupation that he/she may be educated for, trained for, or experienced in and could be reasonably expected to perform.

C. The City shall notify the Union of all Unit members who are placed in the Long Term Disability program, and shall furnish a list of their addresses or contacts and their status every quarter.

Section 5-5: Holidays and Vacation Leave

A. Employees, except those on hourly paid status, shall, when possible, without disrupting the various municipal services, be allowed the paid holidays listed below:

New Year's Day

Martin Luther King's Birthday

President's Day

Cesar Chavez's Birthday

Memorial Day

Independence Day

Labor Day

Veteran's Day

Thanksgiving Day

Christmas Eve

Christmas Day

24 Personal Leave Hours

January 1

Third Monday in January

Third Monday in February

March 31

Last Monday in May

July 4

First Monday in September

November 11

Fourth Thursday in November

Friday after Thanksgiving Day

Four (4) hours on December 24

December 25

After completion of six (6) months'service

1. Personal leave hours are added to an employee's vacation leave bank to be used as such.

2. When a holiday named herein falls on Sunday, it shall be observed on the following Monday, and when a holiday named herein falls on a Saturday, it shall be observed on the preceding Friday, except that the Library Department may observe such holidays on Saturday, and in the case of continuous and/or seven (7) day operations, holidays shall be observed only on the calendar days on which they actually fall. This paragraph shall not apply to Christmas Eve which shall be granted only when it falls on the employee's regular scheduled workday.

A Unit employee working in continuous and/or seven (7) day operation, whose regularly scheduled day off falls on a holiday specified above, who is not on standby (Article 3 Section 3-6), and who is scheduled to work a regular shift on such holiday and scheduled day off, shall be compensated as follows: eight (8) hours pay for the holiday plus pay at time and one-half (1 1/2) the regular rate for

each hour assigned and worked, plus compensatory time credit for each hour assigned and worked to a maximum of eight (8) hours.

B. Vacation Accumulation

Vacation accrual, carryover, and separation pay-out shall be governed by the following table:

SERVICE

0-5 years 6-10 years 11-15 years 16-20 years 21 + years

MAX. CARRYOVER

192 Hours 240 Hours 264 Hours 312 Hours 360 Hours

MONTHLY ACCRUAL

8 hours 10 hours 11 hours 13 hours 15 hours

MAX. PAYOUT

240 Hours 300 Hours 330 Hours 390 Hours 450 Hours

Unit members shall be allowed "vacation buyout" twice per calendar year, on the last paycheck of November and/or May. The total annual buyout is up to a maximum of eighty (80) hours taken in no more than forty (40) hour increments, after the employee has accumulated a minimum of one hundred twenty (120) hours of vacation leave. The employee must take a minimum of forty (40) hours of vacation/comp-time during the calendar year to qualify for these payments.

For the 2010-2012 contract, the May vacation buyout is suspended. It will be restored as of June 30, 2012 (for purposes of Meet and Confer for the 2012-2014 contract).

Unit members may contribute accrued vacation or compensatory time to other employees in accordance with City policy governing contribution of leave for serious illness of an employee or their immediate family member. An immediate family member is defined as the employee's spouse, qualified domestic partner, mother, father or child. Child is defined as a biological, adopted, foster or stepchild, legal ward, or a child of a person standing in place of a parent. Or a brother, sister, grandparent, or in-law who are living with the employee and under his/her care. Requests to receive such leave contributions will require a completed doctor's certification.

The parties agree that on the following specified holidays starting in July 2009, all unit members whose regularly assigned work week consists of four (4) ten-hour (10) shifts, shall not be required to submit documentation for two (2) hours of paid leave on the following holidays:

1. Independence Day, July 4

2. Labor Day, September, First Monday

3. Veterans Day, November 11

4. Thanksgiving Day, November, Fourth Thursday

5. Friday after Thanksgiving Day

6. Christmas Day, December 25

7. Memorial Day (effective May 2010)

Section 5-6: Uniforms

A. Airport Security Guards (Class Code 24000) uniforms will be supplied by the Aviation Department.

B. On the effective date of this Memorandum, the City will assume responsibility for the weekly cleaning/laundering of uniforms issued to those Unit members who are employees of the Equipment Management Division of the Public Works Department.

Section 5-7: Parking

Employees regularly assigned to the Airport Terminal buildings shall be provided parking facilities without charge at a location at the airport to be specified by the Director of Aviation.

Effective July 8, 2002, all employees who pay for parking will be charged half price at any downtown City owned parking garage if they park a motorcycle.

All regular full-time and regular part-time Unit employees will receive, upon request, a City issued bus pass at no cost to the employee.

The City will provide two (2) parking cards and the sum of two thousand dollars ($2,000) on or about July 1, of each MOU year to the Union for parking.

Section 5-8: Tool Allowance

A. Unit employees in the following eligible classifications will receive a tool maintenance allowance of three hundred dollars ($300.00) per annum.

Payment for tool allowance will be made on or about September 1.

Classification

User Technology Specialist U2

Airfield Maintenance Worker I

Airfield Maintenance Worker II

Operations and Maintenance Technician

Heavy Duty Maintenance Mechanic

Instrumentation and Control Specialist

Trades Helper, Assigned U2

Traffic Maintenance Worker, Assigned U2

Equipment Operator IV, Assigned U2

Equipment Service Worker I

Heavy Equipment Mechanic, Assigned Lead

Traffic Signal Technician Trainee

Electrician Helper

Electrician Apprentice

Electrician

Electrician, Assigned Lead

Traffic Signal Technician

Electronic Technician

Telecommunications Specialist

Communications Technician

Welder, Assigned U2

Building Maintenance Apprentice

Building Equipment Operator I, assigned U2

Building Equipment Operator Apprentice

Building Equipment Operator II, assigned U2

Building Maintenance Worker, Assigned U2

Locksmith

Communications Technician Aide

B. Unit employees in the following eligible classifications will receive a tool maintenance allowance of six hundred dollars ($600.00) per annum.

Payment for tool allowance will be made on or about September 1.

Equipment Maintenance Helper, Assigned U2

Equipment Service Worker II (Mechanic's Helper)

Auto Mechanic Apprentice

Automotive Technician and all assignments

Heavy Equipment Mechanic and all assignments

Equipment Repair Specialist

Body Repair Specialist

Fuel System Support Technician

Helicopter Mechanic

c. Employees will be allowed City time to renew their COL license and/or related endorsements and will be reimbursed for such renewal fees which include the HAZMAT background screening fee.

Section 5-9: Parental Leave

A. The City will, as a matter of general policy, and subject to operational needs, authorize up to three (3) months of unpaid leave for an employee who is the parent of a newly born or legally adopted child or any Unit member who needs to care for an ill family member. Family members include spouse, children (natural, adopted, foster, or stepchildren), brother, sister, parents, grandparents, as well as others living in the same household with the employee. Approval and use of this leave shall be subject to existing Personnel Rules.

B. An employee may use up to ten (10) hours of accumulated sick leave in at least one-hour increments each calendar year for the home care or medical treatment for an immediate family member residing in the employee's household. When there is an extreme illness or injury situation where a life or death question exists involving an immediate family member, an employee may use up to five (5) days of accumulated sick leave. (This should not be construed as bereavement leave under Personnel Rule 15g).

In addition, employees may have dependent care situations where the above leave is insufficient to cover their absence. Therefore, employees will be allowed to use unscheduled accumulated vacation or compensatory time for the care of an immediate family member up to a maximum of five (5) incidents not to exceed a total of forty (40) hours each calendar year.

For all the above mentioned leaves, (sick leave, vacation, and compensatory leave) the employee will not have these leaves be considered a negative factor, when evaluating the job performance of an employee involved in a leavemanagement program, up to a maximum total of seven (7) incidents per calendar year. An incident is defined as an absence from work, regardless of the length of time.

An immediate family member is defined as the employee's spouse, qualified domestic partner, mother, father or child. Child is defined as a biological, adopted, foster or stepchild, legal ward, or a child of a person standing in place of a parent. Or a brother, sister, grandparent, or in-law who are living with the employee and under his/her care. Requests to receive such leave contributions will require a completed doctor's certification.

ARTICLE 6: Miscellaneous

Section 6-1: Saving Clause

If any article or section of this Memorandum should be held invalid by operation of law or by a final judgment of any tribunal of competent jurisdiction, or if compliance with or enforcement of any article or section should be restrained by such tribunal, the remainder of this Memorandum shall not be affected thereby; and upon issuance of such final decree, the parties, upon request of either of them, shall meet and confer to endeavor to agree on a substitute provision or that such a substitute provision is not indicated.

Section 6-2: Copies of Memorandum

Within sixty (60) days of the date that this Memorandum is adopted by the City Council, the Union will arrange for printing of jointly approved copies of it for furnishing one to every Unit employee, Unit supervisor, and to management personnel. The cost of such duplication and distribution will be borne equally by the Union and the City.

Printing vendors secured by the Union shall comply with Ordinance G-1372 (Affirmative Action Supplier's Ordinance), as may be amended, and Ordinance G-1901 (Affirmative Action Employment by Contractors, Subcontractors and Suppliers), as may be amended.

Section 6-3: Apprenticeship Programs

The City will make available to the Union copies of all existing apprenticeship agreements affecting Unit II employees.

Section 6-4: Part-Time Employees

A. Hourly paid Unit members, excluding seasonal and temporary employees, who have worked a minimum of fifty (50) hours in each pay period for twenty-six (26) consecutive weeks shall be entitled to vacation credits of four (4) hours per month. Vacation credits shall be calculated and paid in cash, by separate voucher, in December and June.

Continuation of this entitlement will be determined on November 1, February 1, and May 1. If the employee has worked a minimum of fifty (50) hours in each pay period in July, August, and September, his participation shall continue for the period November through January. A similar review and qualification will be required for October, November, and December; January, February, and March; and April, May, and June. If the employee separates from City employment, the participation will cease.

B. Hourly paid employees, excluding seasonal employees, may be considered for advancement from pay step 1 to pay step 2 after completing 1,040 hours of work at step 1. Advancement from pay step 2 to pay step 3 and each subsequent step in a range may be considered after working 2,080 hours in each step. Placement of eligible employees in a higher step shall be effective at the time of the request. No retroactive payments shall be made.

C. No full-time or part-time permanent employees in the City Civic Plaza Department shall be displaced or their hours reduced by the utilization of temporary employees, unless the issue has been discussed by the parties in a Labor/Management meeting and the City has complied with the provisions of Management Procedure 5.501, dated February 7, 1994.

Section 6-5: Water Services Department Certifications

The City will reimburse Unit members of the Water Services Department for expenses incurred as a result of acquiring and maintaining certification required by the State of Arizona.

The City will provide reimbursements to Unit members for COL endorsements.

Section 6-6: Safety Manual

The parties agree that, during the term of this memorandum, the City will publish a Safety Manual covering all citywide safety issues.

The Health and Safety Committee established in Article 2 Section 2-3 of this Memorandum will be given the opportunity to review and to offer input on the manual while it is in draft form and before its final publication.

Once published, there will be no changes made in the manual without the review of the Health and Safety Committee.

Employees are entitled to exercise the rules under OSHA by relating to the competent person assigned that the situation is unsafe and in conflict with OSHA rules.

Section 6-7: Term and Effect of Memorandum

A. This Memorandum shall remain in full force and effect commencing July 1,2010 up to June 30, 2012, and thereafter shall continue in effect year by year unless one of the parties notifies the other in writing no later than November first of its request(s) to modify or terminate it.

B. Except as expressly provided in this Memorandum, the City shall not be required to meet and confer concerning any matter, whether covered or not covered herein, during the term or extensions thereof.

However, the parties will continue to meet with affirmative willingness to resolve grievance and disputes relating to wages, hours and working conditions without effecting the terms of this agreement.

C. If any section or provision of this Memorandum violates existing Federal, State, or City law, then such law shall supersede such provision or section.

D. The lawful provisions of this Memorandum are binding upon the parties for the term thereof. The Union having had an opportunity to raise all matters in connection with the meet and confer proceedings resulting in this Memorandum is precluded from initiating any further meeting and conferring for the term thereof relative to matters under the control of the City Councilor the City Manager.

E. The provisions of this Memorandum apply to all Unit employees, except that entitlement to health, life, and long term disability insurance; holiday, overtime, and show-up time benefits for regular hourly employees shall continue in accordance with present practice and policy.

Permanent employees shall not be laid off from City employment and replaced by the hiring of part-time employees solely for the purpose of eliminating the cost of existing full-time benefits received by permanent employees.

F. This Memorandum constitutes the total and entire agreements between the parties and no verbal statement shall supersede any of its provisions.

In Witness Whereof, the parties have set their hands this j'"'day of d(Jjtct--zo10.

AFSCME Local 2384 3636 North 15^th Avenue Phoenix, Arizona 85015

Darrell Abram

President AFSCME Local 2384

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LiSaESq~

Deputy Human Resources Director

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David Cavazos

City Manager

City Clerk

Local 2384 Bargaining Committee:

Darrell Abram., President, AFSCME Local 2384 Jim Tierney, Vice-President, AFSCME Local 2384

Luis Schmidt, Secretary-Treasurer, AFSCME Local 2384 Jack Knight, Recording Secretary, AFSCME2364

Joe Garcia, Executive Board Member, AFSCME Local 2384 Tony Salvaggio Executive Board Member, AFSCME Local 2384 Jim Nolan, Executive Board Member, AFSCME Local 2384 Robert Ayala, Trustee

Gabe Hernandez, Trustee

Roger Scott, Member

City of Phoenix Bargaining Committee:

Lisa Esquivel, Deputy Director, Human Resources Department Greg Ramon, Assistant Director, Water Services Department Richard Beardsley, Deputy Director, Housing Department

Ron Serio, Deputy Director, Public Works Department

Prasan DeSilva, Event Services Manager, Phoenix Convention Center

Brenda Schrader, Human Resources Supervisor, Human Resources Department Ashlee Buckwalter, Senior Human Resources Analyst, Human Resources Department

Addendum Allocation of Stewards

The allocation of new steward positions under Article 1 will be referred to the LaborManagement Committee for appropriate action.

Guidelines for designation of new stewards shall include:

1. A designated steward must be one from amongst employees regularly working at a specified job site.

2. The designation of job site stewards shall take into consideration the following:

a. proportional representation of approximately 1-30,

b. organizational structure of department,

c. avoidance of duplicating service,

d. crew size of work unit divisions,

e. span of control by management.

Department/Division

Aviation/Bldg.Ops. General Aviation

Maint/Air. Sect. Op./Custodians Electrical Maint. Op./Security

Event Services Housing/Conventional Elderly

Public Works Bldg Maint Equipment Mgmt.

Fire Operations Center

Street Trans./Materials/lnsp. Street Trans./Survey

Street Trans./Operations WastelWastewater Treatment

Water Pollution Control Wastewater Collection

Water Customer Service

Water Production

ATTACHMENT "A" (Subject to Reallocation)

Site Steward Allocations

Sky Harbor Airport Deer Valley Airport Goodyear Airport Sky Harbor Airport All Term.-Sky Harbor Electrical Shop

Phoenix Convention Center Phoenix Convention Center All Conventional Sites

All Elderly Sites

2631 S. 22ⁿ^d Ave.

22ⁿ^d Ave. Service Center Fire Operations

Salt River Service Center Union Hills Service Center Glenrosa Service Center Okemah Service Center 150S.1i^hst.

1034 E. Madison

1034 East Madison

2631 22^nd Ave.

23^rd Ave. & Durango 91⁵¹ Ave. Plant

52ⁿ^d St. & Thomas Northwest Service Center North Yard

A.1-2525 E. Hess A.2-2002 E. Maryland A.3-16201 N. 21⁵¹ Ave. AA-2301 W. Durango A.5-138 E. Union Hills Verde Plant

Deer Valley Plant Squaw Peak Plant Union Hills Plant Val Vista Plant

52ⁿ^d St. & Thomas Phoenix Wells West

ATTACHMENT "A" - CONTINUED (Subject to Reallocation)

Site Steward Allocations

Water Distribution

WaterlWastewater Specialized Svcs

3045 S. 22ⁿ^d Ave. 52ⁿ^d S!. & Thomas Corona Yard

Deer Valley Yard Morten Yard Paradise Valley Yard Heavy Main!. Yard Heavy Main!. Yard Electricians

Heavy Main!.

Light Main!. (O&M)

Instrument & Control Specialist

Department

Chief Steward Allocations

Division

Aviation Sky Harbor Police/Fire/Street Trans. Public Works

Housing WaterlWastewater

Wastewater Treatment - 23^rd Avenue Wastewater Collections

Water Customer Services

Water Pollution Control

Water Production

Water Distribution

Specialized Services

All (4) All (3) All (2) All (2)

91⁵¹ Avenue (3) All (2)

All (2)

All

All (3) All (2) All (2)

Lead Steward Allocations

Department

Aviation (3)

Public Works (2) Street Transportation

Phoenix Convention Center (2) Fire

Housing

Police

Water Services (6)

Budget and Research

ATTACHMENT B

SUMMARY OF GENERAL FUND REVENUE (In Thousands of Dollars)

21912010

08-09 Act to

09-10 Bud to

09-10 Rev Est

10/11 Est

Actuals

07-1)8 Act

Budget

08-09 Actual

Estimate

to 08-09 Act.

Estimate

to 09/10 Est

Revenue Source

2007-08

2008-09

% Change

2009-10

% Change

2009-10

% Change

FY2010-11

% Change

Local Taxes

Primary Property Tax

103,033

110,085

6.8%

121,015

9.9%

121,015

9.9%

121,757

0.6%

Sales Taxes

408,515

358,249

-12.3%

404,283

12.8%

339,192

-5.3%

378,593

11.6%

Privilege license Fees

2,402

2,370

-1.3%

2,473

4.4%

2,450

3.4%

2,595

5.9%

Other General Fund Excise Taxes

8,193

14,220

73.6%

16,458

15.7%

15,325

7.8%

15,555

1.5%

Subtotal

522,143

484.924

-7.1%

544,229

12.2%

477,982

-1.4%

518,500

8,5%

Non Taxes

Licenses & Permits

2,723

2,684

-1.4%

2,930

9.2%

2,625

-2.2%

2,628

0.1%

Cable Communications

10,387

12,292.

18.4%

9,624

-21.7%

9,602

-21.9%

9,566

-0.4%

Fines & Forfeitures

20,266

19,253

-5.0%

19,255

0.0%

19,150

-0.5%

20,403

6.5%

Court Default Fee

643

782.

21.8%

954

21.9%

1,100

40.5%

1,100

0.0%

Parks & libraries

7,102

7,789

9.7%

7,883

1.2%

8,384

7.6%

8,388

0.0%

Engineering & Architectural Services

2,379

2,994

25.9%

2,660

-11.2%

3,045

1.7%

2,962

-2.7%

Planning

1,541

970

-37.1%

1,305

34.6%

992

2.2%

992

0.0%

Police

14,059

13,526

-3.8%

15,891

17.5%

13,634

0.8%

14,176

4.0%

Street Transportation

2,067

1,570

-24.0%

2,727

73.7%

1,875

19.4%

1,915

2.1%

Emergency Transportation

24,336

29,311

20.4%

28,500

-2.8%

32,500

10.9%

32,800

0.9%

Hazardous Materials Inspection Fee

1,478

1,471

-0.5%

1,800

22.4%

1,500

2.0%

1,800

20.0%

Other Service Charges

14,540

12,863

-11.5%

12,764

-0.8%

12,150

-5.5%

12,154

0.0%

All Others

11,378

12,307

8.2%

15.382

25.0%

13,640

10.8%

15,704

15.1%

Subtotal

112,899

117,813

4.4%

121,675

3.3%

120,196

2.0%

124,588

3.7%

State Shared Revenues

Sales Tax

135,134

116,275

-14.0%

133,428

14.8%

106,798

-8.2%

112,717

5.5%

Income Tax

207,694

220,806

6.3%

190,540

-13.7%

190,541

-13.7%

143,665

-24.6%

Vehicle License Tax

59,244

53,629

-9.5%

57,407

7.0%

51,484

-4.0%

54,112

5.1%

Subtotal

402,072

390,710

-2.8%

381,375

-2.4%

348,823

-10.7%

310,494

-11.0%

TOTAL

$ 1,037,114

993,448

-4.2% $ 1,047,279

5.4% $

947,001

-4.7% $

953,582

0.7%